I’m glad to say last week’s stabilisation wasn’t a false dawn on skim milk powder, but the leverage that the middle market is trying to use is the relatively low milk production through the summer months, with their ‘Buy now and avoid the increase’ messages. We may see a slight weakening with profit taking, but it doesn’t have the feel of an imminent collapse.

Whey, on the other hand, is on the slide, and it has slumped more heavily in the US and Asian markets, leaving European sources as too costly for exports. However, I’m not confident we'll see a huge chunk out of prices, simply because of poor cheese production and the price relationship with a skim market that is unlikely to follow suit.

Sterling is still suffering from the charge of the light brigade to become the leader of the disintegrating former party of business.

BDC agri is the UK broker for Lacto Production milk and whey powder products. For further information and prices, contact Greg Dunn on 01206 381521 or g.dunn@blackdiamondcommodities.com